Practical Process of RMG Industry

What is Outstanding Payment Policy for Workers ?

Outstanding Payment Policy for Workers

Payment Policy Definition:

This payment policy is applicable for all the employees working at different units of the Auto Group regardless of their gender and designations. The objective of this policy is make sure that, employees are properly being paid with their due amounts for which they are eligible and through which process all the formalities should be taken care of. There should be a policy to ensure that, everyone knows how outstanding payments should be cleared under different circumstances, so that one person does not receive discriminatory treatment as compared to others.

Payment Policy:

  • Employees who resign through right process with prior notification (2 months for workers and between 1 to 2 months for staff depending on individual contracts), should be eligible to get the payments of his/ her workdays and the due payments for their Earned Leave, Provident Funds and Gratuity.
  • If an employee leaves all of a sudden without proper prior notification, then as per law the company reserves the right to deduct from accrued payment, the basic salary of the notice period that was to be given. If any employee is found to have a ‘payable’ to the company after such deduction the company has the right to take legal actions to recover the money.
  • In case any accidental child labor is discovered, then he/ she will be terminated with full payment policy up to the working day and full compensation as stated in the labor law.
  • If any employee submits a resignation giving proper notice time but the company wishes to discontinue the person’s service ahead of the given last day of work then the company will pay the employee the full salary and benefits for the period by which the notice time has been shortened.
  • If an employee is dismissed due to perform financial embezzlement, then the misappropriated amount will be deducted from accrued payments, but the person can be terminated without any additional compensation. The company can take legal action to recover the remainder of the embezzled fund, that which could not be adjusted.
  • If an worker is terminated then he/she will be compensated by 3 months’ salary and other accrued payments. In case of staff, he/she will be compensated with 2 months’ salary or as agreed in individual contract.
  • Time of payment policy of wages: The wages (with Overtime Payment) of every worker shall be paid by Auto Group before the expiry of the 7th (seventh) day after the last day of the wage period in respect of which the wages are payable.
  • Time limit of final payment of worker: Where the employment of a worker has been cussed due to a retirement, discharge, retrenchment, dismissal and termination etc. all amounts due to him shall be paid within maximum 30 (thirty) working days by Auto Group All payment policy of wages shall be given on a working hours

Regulations & Procedures:

  • HR Department will process all the resign bill related issues and forward to the Accounts, and from there final amount will be paid to the persons who are leaving.
  • Auto Group strongly prohibits child labor, though incase if such to be found in any of its units then that person will be terminated right away. In such case HR Department will make requisition for that person to the Accounts and the due payments should be paid as early as possible on the same day.

Responsible Parties:

To implement this policy HR, Admin, Accounts, Welfare and Compliance Departments will responsible.

Communication & Implementation:

  • Policy will be communicated through mail notifications to all and subsequent explanation by department heads to team members
  • Also will be explained by HR team members
  • Payment policy book will be provided to all department heads for reference


If the higher authority feels like then someone can be absorbed from the punishment.


Anyone who feels that he/she has been deceived or improperly being paid, can always complain in the complaint boxes or to the higher management based on the intensity of the condition. Compliance and Welfare Departments will verify through monthly checking that, all the process were done properly on due time. Payment policy should be written in an organization.

Engr. Kh. Mashiur Rahman, Email:

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